How to Invest (As a Business Owner)
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- čas přidán 3. 07. 2024
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Timestamps
00:00 - Intro
00:38 - Why "normal" won't work
01:36 - How most business owners invest
03:32 - The concentration problem
05:07 - Having cake & eating it
08:28 - My weird investment portfolio
12:47 - Your turn
Another great video from the only youtuber I have turned the notification bell on.
Thank you so much for your insight!
Good Deal Hermano! 👍 Congratulations on your continued success 👍
Nice video. I can see your risk tolerance changes as your values grow over time. I learned about this strategy some time ago looking through data and it is interesting.
I think conceptually this is good advice. I’ve been doing this, even if unconscious, for years now.
I personally think that having such a massive allocation to bonds is terrible given the levels of inflation that we have and that we will continue to have due to money printing globally. I’m guessing you have about a million bucks in bonds in order to get anything u can live on.
But anyways, for anybody else reading this, my version of this strategy is a team effort. My wife has a high paying stable job in tech, and I freelance here and there. This creates stable revenue from my wife’s side and it gets complemented by my freelance gigs. This also leaves me time to work on my business and expand, which in turn gives me more cash that I invest in high return, high risk assets.
It has worked well so far.
Great point about salaried income counting as a stable asset. Thanks for sharing your version of the strategy.
Gotta defend the treasuries though. Comparing them solely on rate of return vs inflation is naive. With that line of thinking anything on the "stability" side is a terrible idea: e.g. having a job is a terrible idea when you'd end up with a much higher return investing all of that scarce energy into a business.
But that misses the point which isn't the max return - its the stability AND optionality of being able to deploy cash to whatever you want, when you want.
20-30% or similar cash equivalents allocation lines up with - Berkshire Hathaway, Alex Hormozi's Acquisition holdco, the >$100M NW entrepreneurs in that survey, etc etc.
Could be something you're missing :)
@@MylesDunphy 100% agree. T bills or similar are the smart cash positions. Having a sizable cash position especially in a rough macro environment is prudent in order to pounce on distressed assets or new opportunities with asymmetric upside.
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